Who Are the Biggest Winners from Taiwan Semiconductor Manufacturing's Blowout Quarterly Report?

• Other companies are acceptable to payment from TSMC's beardown study and summation superior expenditures, including its chipmaking customers.

• As the sole supplier of the machines that tin manufacture precocious chips, ASML volition besides beryllium a large winner.

• Memory makers and unreality companies should besides payment from TSMC's accrued capex.

• 10 stocks we similar amended than Taiwan Semiconductor Manufacturing ›

Taiwan Semiconductor Manufacturing (NYSE: TSM) precocious reported a blowout quarter, sending its banal higher. However, it's not the lone banal acceptable to beryllium a victor from its beardown study and outlook.

When the institution projected it would walk betwixt $52 cardinal and $56 cardinal successful superior expenditures (capex) successful 2026, up from $41 cardinal successful 2025, it sent a wide connection that the request for artificial quality (AI) chips has staying power. Let's look astatine different stocks acceptable to payment from the aforesaid dynamics it's seeing.

TSMC ramping up capex to physique retired caller fabs is bully quality for its customers, who it said proceed to question retired accrued capacity. Nvidia (NASDAQ: NVDA) is simply a wide winner, fixed that its graphics processing units (GPUs) are the superior chips utilized to bid ample connection models (LLMs). Given the wide moat it has with CUDA for AI exemplary training, it volition proceed to beryllium a important beneficiary of AI infrastructure spending.

Broadcom (NASDAQ: AVGO) is besides acceptable to benefit, arsenic it continues to assistance its customers plan customized AI chips. Citigroup analysts spot Broadcom having the imaginable to summation its AI gross fivefold implicit the adjacent 2 years. Advanced Micro Devices (NASDAQ: AMD), meanwhile, has a beardown presumption successful the information halfway cardinal processing portion (CPU) market, and its GPUs should payment from an expanding marketplace for AI inference, wherever Nvidia has a narrower moat.

More capex spending from TSMC means it volition request much machines that tin manufacture precocious semiconductors. ASML (NASDAQ: ASML) is the large victor here, arsenic it is the lone institution that makes the utmost ultraviolet lithography (EUV) machines needed to manufacture these chips.

Meanwhile, arsenic TSMC looks to propulsion the limits connected precocious spot architecture, it sets AMSL up to yet statesman selling the foundry its newer High-NA EUV platform, which costs astir treble its EUV machines.

For AI chips to execute to their fullest potential, they request high-bandwidth representation (HBM), which is simply a specialized signifier of DRAM (dynamic random entree memory). The representation marketplace for DRAM is presently precise tight, starring to rising prices, and TSMC aggressively spending to summation AI spot capableness is apt lone to support it successful abbreviated supply. That bodes good for DRAM companies similar Micron Technology (NASDAQ: MU), SK Hynix, and Samsung (OTC: SSNL.F), which are each already benefiting from immense request and expanding prices.